YUNJI INC (NASDAQ:YJ) Q2 2019 Earnings Conference Call - Final Transcript

Aug 22, 2019 • 07:30 am ET


YUNJI INC (NASDAQ:YJ) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning, and good evening, ladies and gentlemen. Thank you and welcome to Yunji's Second Quarter Earnings Conference Call. [Operator Instructions] With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Chen Chen, Chief Financial Officer; Mr. Hui Ma, Chief Strategy Officer and Chief People Officer; and Ms. Kaye Liu, Investor Relations Director of the Company.

I'll now turn the call over to the first speaker today, Ms. Kaye Liu, IRD of Yunji.

Kaye Liu

Hello, everyone. Welcome to our second quarter of 2019 earnings call. Before we start, please note that this call contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest documents filed with US SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we do not undertake any obligation to update these statements except as required under applicable laws.

These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties and other factors that are not under the Company's control, which may cause actual results, performance or achievement of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements. All forward-looking statements is [Indecipherable] in the entirety by this cautionary statement, risk factors and details of the Company's filing with the SEC. Yunji undertakes no duty to revise or update any forward-looking statements for select events or to commensurate after date of this conference call.

With that, I would now turn over to Shanglue Xiao, our Chairman, CEO of Yunji.

Shanglue Xiao

[Foreign Speech] Hello, everyone, and welcome to Yunji's second quarter 2019 earnings call. We have made meaningful progress in extending our growth rate in social e-commerce network and gross selling with social connections among our members, service managers and brand suppliers. At the same time, we have struck a balance between quality and speed of care expansion, maintaining a disciplined approach in sales and marketing, and construct a solid foundation for sustainable growth.

[Foreign Speech] During the second quarter, our GMV increased by 46.4% year-over-year to RMB8.2 billion, while our total revenue reached RMB3.07 billion. As of June 30, 2019, cumulative members increased by 19.5% to 10.8 million from 9.0 million as of March 31, 2019. In the 12 months ended June 30, 2019 [Phonetic], our transaction members increased by 125.1% year-over-year further demonstrating the activity of our platform.

[Foreign Speech] We achieved such healthy using growth rates mainly through executing our three strategies. First, allocate resources permanently and [Indecipherable] excessive e promotion; second, define product curation enhanced supply chain capabilities; and third, liberate social features and improve member benefits through our service manager income.

[Foreign Speech] First, in pursuit of a healthy and value growth for the long haul, we will bring something called intra-brand battle on the e-commerce platform during our June 18 online shopping